Final Report British Columbia Ministry of Justice B.C. Liquor Policy Review Final Report Table of Contents Message From John Yap 1 Introduction 3 Context 5 Health, Safety and Social Responsibility 7 Roadside Prohibition Program 8 Public education 8 Licensee and sta education 9 Enforcement and compliance 10 Vignette: Vancouver Police Department Ride Along 12 Pricing 13 BC Liquor Stores Sales by Region (2012/13) 14 Retail and Convenience 14 Increased convenience for consumers 15 Economic Growth, Jobs, Tourism and Marketing 20 Vignette: Shelter Point Distillery 21 Promote B.C. products 22 Manufacturer sales and sampling 23 O-site sales and sampling 25 Licensing and Cutting Red Tape 27 Liquor-primary licences 27 Food-primary licences 29 Licence applications and the role of local governments and First Nations 31 Vignette: Lido Theatre 32 Special Occasion Licences 33 Clubs 35 Arenas, stadiums and event-driven facilities 36 Liquor Distribution Branch operations 37 Flexibility and red tape reduction 37 Vignette: The Heid Out Brewhouse and Restaurant, and Fisher Peak Brewing Company 38 Change Management 40 The Last Word 41 Recommendation Summary 43 Appendix A: List of stakeholder meetings 51 Appendix B: Terms of Reference 53 British Columbia Ministry of Justice B.C. Liquor Policy Review Final Report 1 Message From John Yap To: The Honourable Suzanne Anton Attorney General and Minister of Justice Dear Minister Anton, I am honoured to submit the report of the Liquor Policy Review to you for consideration by government. This report summarizes the tremendous public response to the Review, and the thoughtful and considered views in 188 stakeholder submissions. Throughout September and October 2013, I held 65 stakeholder meetings and the review team assessed a total of 4,364 website comments, 3,587 emails, and 41,195 ratings. During the course of the entire review period, over 87 days, there were more than 76,000 visits to the Liquor Policy Review website: engage.gov.bc.ca/liquorpolicyreview. I must say that although I anticipated strong public interest in this review, I was surprised, very impressed and extremely encouraged by the level of engagement in and quality of submissions to the process. It is clear to me that many British Columbians and stakeholders in all areas of the province were interested and engaged in providing direct input and thoughtful advice. @jamesinpent: @John_Yap this is a great use for social media, very progressive, Im impressed. #bcliquor The dominant theme that emerged in both the review and this report is developing a balanced approach to protecting public health and safety, providing more convenience for consumers, and streamlining regulations for the industry. There was a wide range in the viewpoints, issues and opportunities expressed. Discussion covered every conceivable aspect of liquor distribution and sale, use and abuse, convenient access and public safety, regulatory burden and economic opportunity. The issues are diverse and complex, and the clear articulation of all points of view gave me a comprehensive insight into what works and doesnt in the evolution and application of B.C.s liquor policies, regulations and legislation. The participation of so many interested British Columbians provided clear direction for this review. In fact, on Oct. 29, 2013, I announced that in response to the overwhelming interest and support for making liquor available in grocery stores, I would look further at this policy option and would include recommendations in this report. That decision was in response to the clear wishes expressed by British Columbians; by the end of the consultation, almost 75 per cent of all comments, emails and tweets on the topic of liquor in grocery stores were generally in favour of more convenient access. This report is a direct reection of what British Columbians told us they want to see in the evolution of liquor policies, and strives to balance public health and safety, convenience for consumers and lessening the regulatory burden for manufacturers and licensees. British Columbia Ministry of Justice 2 This report, which I present today for your consideration, meets the Terms of Reference for this review: that recommendations consider all aspects of liquor policy including licensing, control and distribution. The recommendations also call for: Creating a licensing system that responds to emerging marketplace realities and reects current lifestyles and societal values. Providing exibility for businesses and removing operational barriers, to help grow the economy while protecting public safety. Recognizing the importance of jobs and investment in the hospitality, tourism and agri-foods sectors, in support of the BC Jobs Plan and continued economic growth. Ensuring a sustainable liquor manufacturing sector. Providing for an ecient and eective liquor distribution system. As laid out in the Terms of Reference, recommendations adhere to the following guiding principles: That government revenue is maintained or increased. Minimize health and social harms caused by liquor. Balance economic and social interests by ensuring public safety and the public interest of British Columbians and their communities is protected. Be evidence-based and transparent. Respect obligations under collective agreements and international and interprovincial trade agreements. I appreciate the opportunity to lead a process that has engaged so many British Columbians. I believe that, as a whole, these recommendations are a balanced and responsible approach to liquor policy in British Columbia. I want to thank the dedicated public servants who worked on this review with me. Thank you for the opportunity to take part in this review. Respectfully submitted, John Yap Parliamentary Secretary to the Attorney General and Minister of Justice for Liquor Policy Reform B.C. Liquor Policy Review Final Report 3 Introduction The rst liquor control legislation in British Columbia was created in 1853, when Governor James Douglas persuaded the Colonial government to license wholesale and retail outlets on Vancouver Island. After Confederation, constitutional authority was divided between the federal and provincial governments. Provinces have regulated trade in alcohol ever since. While there have been many updates and amendments to the legislation over the past century, the B.C. Liquor Policy Review is the rst comprehensive overview that has so heavily drawn from public input, consulted extensively with stakeholders and covers liquor regulation, production, access and distribution, as well as health, safety and social responsibility. This Review has looked at a regulatory regime that has become outdated, overly complex and excessive, in a time when the public has a far more diverse set of tastes and is acutely aware of the damage and dangers caused by overconsumption of alcohol. Public comment and presentations to the Review have made a strong case for the need to balance convenience and public safety. Public health advocates reinforced the message for responsible use of alcohol, while constructively acknowledging that outdated regulations have become consumer irritants, instead of effective deterrents. British Columbia has a strong record of public health and safety. In 2013, the Centre for Addiction and Mental Health (in association with the Centre for Addictions Research of B.C.) ranked British Columbias alcohol policy second overall in Canada, in terms of health and safety. This government has committed to maintain and improve that ranking. We have an obligation to do so. Health advocates have called for government to act on minimum pricing changes, and this report has recommendations to address this shortcoming. They have sought support for increased awareness and public education on safe alcohol consumption, and I have made recommendations to this end. This government continues to voice its strong support for policing programs that make a noticeable dierence to communities across British Columbia. These include established programs like CounterAttack and emerging practices such as Bar Watch. In 1923, the B.C. government licensed the provinces first winery. It was located on the Saanich Peninsula and made loganberry wine. Since then, British Columbia has become a recognized producer of high-end, regional, craft and artisanal alcoholic beverages. The Okanagan region is renowned for its wine. It has been joined by vineyards on Vancouver Island and the Gulf Islands, in the Fraser and Similkameen valleys, and new wineries in the Shuswap, North Okanagan, Thompson-Nicola and West Kootenays. Craft beer is a rapidly emerging growth sector across the province. At the same time, British Columbians have developed more sophisticated tastes, an appreciation for specialty liquors and pride in the home-grown small businesses that produce them. All of this actively contributes to the economic development of our province, including new job creation in the sector, and I believe the recommendations will support the steady growth of the industry. British Columbia Ministry of Justice 4 Balanced with that is the widely acknowledged understanding that alcohol is a unique product, and there is signicant responsibility attached to its use. The Liquor Policy Review has been a welcomed opportunity to revisit our assumptions about health and safety practices around alcohol, and I received many thoughtful and thought-provoking submissions. For example, police representatives brought forward constructive suggestions for public events where alcohol is served (e.g., limiting beer gardens to larger-scale events). There were legitimate questions about why parents could have a beer at a hockey game when they are with their child, but not bring them into the neighbourhood pub for Sunday brunch. The Royal Canadian Legion and other community groups presented ideas that will allow their membership to be more engaged in their communities, and both the public and producers are interested in featuring local liquor tasting and sales at farmers markets. I am pleased to oer recommendations in each of these areas. Through all of this, support for the continued role of government as the sole regulator and a key player in distributing and selling alcohol, was strong. There was also support for leveling the playing eld, ensuring that regulations apply equally to private liquor retailers and the B.C. governments Liquor Distribution Branch (LDB). The Liquor Policy Review 2013 is about making substantive reforms that are comprehensive, balanced and responsive to what I heard. British Columbians are full of good and interesting ideas; some I was able to address, some I could not, and some were beyond the scope of this review. While I was not able to act on every suggestion or proposal put forward, I want to personally note that I am very appreciative of and heartened by the interest British Columbians have shown in this review. Your contributions have been a strong voice in shaping all of these recommendations. September 10, 2013 meeting with the Wine Islands Vintners Association B.C. Liquor Policy Review Final Report 5 Context In direct costs, B.C.s liquor industry is worth $930 million each year $1.1 billion when you incorporate the taxes that liquor sales bring in. Expand this to include indirect revenue, and the value to the economy and government rises to an estimated $2 billion. When you consider the number of people employed in areas associated with liquor sales, retail, restaurants, hotels, etc. the majority fall in the tourism sector, in which more than 126,000 people work. Clearly, B.C.s liquor industry is one of the leading contributors to tourism. In fact, more than 800,000 visitors annually spend money related to the wine industry. That is more people than came to Vancouver for the 2010 Winter Olympics. Its not a surprise, then, that the Liquor Policy Review generated more participation than any other engagement ever run by government. We invited British Columbians to participate in the way that suited their needs, and from where they lived, and with minimal cost to them or to government. @jordana_26: #bcliquor def needs some tweaking the rules & regulations are so outdated Having the chance to meet and hear from so many British Columbians was a real privilege. I learned that the more you look at the issues around liquor, the more you appreciate that each group has a dierent story but ultimately, the major issues are all the same. While I have made 73 recommendations that fall within the context of my Terms of Reference, in receiving the feedback from the public and from my meetings with stakeholders, I couldnt help but hear other recommendations that relate to the dierent policies and practices that exist on how the private and public liquor retail systems work. As examples, generally BC Liquor Stores do not open on Sundays and the private stores cant sell wholesale products. Another example would be the discount rate granted to private licensees. Specically, they are able to buy alcohol at a discounted rate from the LDB or BC Liquor Stores. However, there isnt consistency across retailers on the discount given. For example, rural agency stores receive a 12 per cent discount, licensee retail stores receive a 16 per cent discount, and independent wine stores receive a 30 per cent discount. In addition, you will not nd a recommendation either for or against the expansion of walk-in refrigeration units in BC Liquor Stores. With regard to the refrigeration pilot, three locations (Salmon Arm, Duncan and Byrne Road in Burnaby) opened in September and will remain in place permanently. I understand the LDB has agreed that the other four proposed locations will be put on hold pending further evaluation of this initiative. The reason I have decided not to weigh in on these kinds of issues in my report is either because they fall outside of the scope of my Terms of Reference or because these kinds of discussions would immediately lead to implications for government revenue and potential implications, particularly around the grocery model(s) that still need to be developed. That Total since launch: September th October st B.C. Liquor Policy Review days web visits average visit duration ratings mentions on Twitter blog comments private emails and letters stakeholder presentations stakeholder submissions of website visitors contributed in some way 87 76,255 64% 8min:6sec 41,195 4,892 4,364 3,587 75 188 } Engagement Total } Engagement Total } Engagement Total British Columbia Ministry of Justice 6 said, they are all issues that should be considered going forward once the grocery model is settled and future options for the LDB are established with regard to a Crown agency or corporation. I will leave these considerations in the capable hands of the Justice Minister. What I can tell you is that I do believe the retail environment needs to be made more convenient for consumers and more exible and consistent for retailers. Thats why I have addressed a number of recommendations to this end. Overall, from the feedback received during the Review, it is clear that people agree that convenience is currently lacking, that health and public safety issues must be balanced, and that ultimately they are ready for a change to liquor policy. We know we wont get unanimity on all of the recommendations, but I believe, from watching the public debate these issues in their posts, emails, tweets and even a few old-fashioned, handwritten letters and face-to- face meetings that we have a good sense of what British Columbians want, and we will get a moderate consensus on these recommendations. And thats pretty good. B.C. Liquor Policy Review Final Report 7 Health, Safety and Social Responsibility Alcohol is a unique product. While it is a source of pleasure and enjoyment for the vast majority of people and can be part of a balanced, healthy lifestyle, we know from much experience that when it is misused, there are serious consequences. Alcohol abuse accounts for approximately 10 per cent of the burden of disease globally. In British Columbia, there were 21,542 hospitalizations and 1,191 deaths due to alcohol in 2011. It is a contributor to the rate of cardiovascular disease and cancer. Health authorities report that more than 30 per cent of all clients they see for substance-use services report hazardous levels of alcohol consumption and/or alcohol dependence. Having a realistic understanding of the inherent risk of alcohol abuse in British Columbia today is a key directive for this review: to create a licensing system that responds to emerging marketplace realities and reects current lifestyles and societal values, while minimizing health and social harms caused by liquor. I believe this report strikes this balance. After talking to many people, reading their submissions and reviewing their social media commentary, I have concluded that if there is one absolute on this subject, it is that the vast majority of British Columbians believe that access to alcohol can and should continue to be controlled. I also learned from this review that there is much more educational information available on the harmful eects of alcohol, and we need to share it with British Columbians. This information covers the short-term risks of overdrinking and binge drinking, as well as the real, long-term risks that people face if they chronically abuse alcohol. This report makes specic recommendations to address the concerns raised in presentations. These include: Increased public education. Requiring training of everyone selling and serving alcohol. More closely linking the price of liquor to alcohol content. Stricter enforcement of existing legislation and regulations. This report also makes numerous recommendations to increase convenience for the majority of British Columbians who enjoy moderate drinking. These include selling alcohol in a grocery store setting; providing more opportunities for British Columbians to buy and sample B.C. wines, beers and spirits; and, where appropriate, allowing businesses to oer their clients an alcoholic drink. For each of these recommendations, this report identies existing or recommends new programs and initiatives to protect health and ensure social responsibility. I believe that, taken together, the recommendations in this report nd the balance between convenience for consumers, streamlining regulations for the industry, and placing a high value on health and safety for the general public. British Columbia Ministry of Justice 8 Public education Research supports the eectiveness of developing specially designed messages and information and connecting specic audiences (e.g. youth, pregnant women, students and binge drinkers) with programs designed specically for them. British Columbia already has excellent programs in place, such as the Healthy Minds/Healthy Campuses program for post-secondary students. The following recommendations build on this foundation and identify specific goals. Recommendations: 1. Government should expand public education about health and safety risks related to alcohol use, with particular emphasis on the harmful eects of binge drinking by youth and post-secondary students. 2. Government should identify all of its alcohol-related education initiatives to ensure they are focused and are as eective as possible. 3. Easily understood information about Canadas Low Risk Drinking Guidelines should be made available to consumers in licensed establishments. 4. The Liquor Control and Licensing Branch (LCLB) should have the regulatory authority to require social responsibility public education material to be posted in all licensed establishments and liquor stores. These materials should be developed in consultation with industry. 5. Government, public health ocials and industry should collaborate to develop eective and meaningful social responsibility educational campaigns for display in licensed establishments, liquor stores and advertising and public service campaigns. 6. While labelling liquor bottles and packages is the responsibility of the federal government, B.C. should work with the other provinces and territories to encourage warning labels on liquor products. Roadside Prohibition Program luol|c ol|cy Jec|s|ons con hove o Jtomot|c, os|t|ve onJ |mmeJ|ote eect on the heolth onJ solety ol 8t|t|sh Columo|ons. One ol the most Jen|t|ve exomles |s 8t|t|sh Columo|os lmmeJ|ote kooJs|Je ltoh|o|t|on (lkl} totom lot |mo|teJ Jt|vets. 7h|s low the touhest |n ConoJo when |t wos tst |nttoJuceJ hos oeen vety successlul |n sov|n l|ves. ln the thtee yeots the le|slot|on hos oeen |n lotce, the Jeoth toll ltom Jt|nl|n onJ Jt|v|n hos oeen cut oy mote thon ,o et cent. 7h|s hos soveJ on est|moteJ :;{ l|ves. ln zo:z, mote thon z,,oo Jt|vets |n AoootslotJ, lelowno, lt|nce Ceote, 5oon|ch onJ voncouvet wete ott ol on |nJeenJent kooJs|Je Alcohol onJ 0tu 5utvey. lt lounJ thot owoteness ol the le|slot|on moy hove oeen o s|n|cont contt|out|n loctot to soc|etys chone |n oehov|ot: 79 et cent ol tesonJents wete owote ol the lkl low, w|th the h|hest owoteness 89 et cent |n lelowno. 0t|vets oeJ 25 to 54 wete most l|lely to hove choneJ the|t oehov|ot os o tesult ol the le|slot|on. 0t|vets unJet 25 wete most l|lely to soy they nevet Jt|nl onJ Jt|ve. B.C. Liquor Policy Review Final Report 9 I believe that the best way to minimize harm caused by alcohol is through education. Education concerning cigarettes and health has been very efective in decreasing the number of smokers. Warning labels on products and education starting at an early age in school has contributed to many people voluntarily abstaining fom cigarette use. Education about the dangers of alcohol should be incorporated into the school health curriculum early and ofen starting in elementary school, and enforced throughout our education until Grade 12. I think that warnings on liquor bottles about the dangers of alcohol overconsumption and of drinking alcohol during pregnancy would be an efective way to make people think twice about what they are drinking. If people want to drink alcohol, they will fnd a way to drink it. We need to focus on educating so that people choose to drink moderately, and feel good about their right to enjoy a drink fom time to time. Emerald, Oct. 15 Licensee and sta education There is evidence of improved knowledge and attitudes among people who have taken responsible beverage service training, such as B.C.s Serving it Right (SIR) program. Training can decrease bad serving practices and increase soft interventions, such as stopping service to people who are overdrinking. It has been particularly eective when coupled with management training and appropriate house policies. The following recommendations would help ensure that every person serving or providing alcohol in British Columbia has taken this program. Recommendations: 7. Serving it Right (SIR), the provincial governments responsible beverage service program, should be expanded and enhanced: o. 5oles onJ setv|ce sto |n testoutonts, w|ne stotes, tutol oency stotes onJ 8C l|quot 5totes who ote not olteoJy tequ|teJ to hove 5lk cett|cot|on shoulJ now oe tequ|teJ to ooto|n |t. l|censees, monoets, onJ soles onJ setv|n sto shoulJ olso oe tequ|teJ to tecett|ly. o. A locuseJ, oot|JeJ onJ less exens|ve vets|on ol 5lk shoulJ oe JeveloeJ lot eole who tece|ve 5ec|ol Occos|on l|cences (5Ols} ot who setve ot these events. 7h|s w|ll hel ensute they unJetstonJ the|t tesons|o|l|t|es otounJ tesons|ole honJl|n ol l|quot. British Columbia Ministry of Justice 10 c. 5lk content shoulJ oe uJoteJ to |ncluJe |nlotmot|on ooout: |. ConoJos low-t|sl Jt|nl|n u|Jel|nes. ||. the soc|ol onJ heolth costs ol olcohol. |||. why olcohol |s teuloteJ. J. 5lk shoulJ cont|nue to osl tecent toJuotes to evoluote the totom, w|th the o|m ol Jevelo|n onJ |nttoJuc|n |mtovements. 8. The fee structure of SIR should be reviewed by the provider and government to ensure the cost to retailers and establishments is not onerous. Additionally, consideration should be given to the application of fee revenue to SIR program enhancements. 9. LCLB should develop an in-person educational program for licensees, like that in Ontario, to educate licensees and their sta about the Provinces liquor laws and how to operate their establishments in a responsible manner. The goal would be to increase licensee compliance and develop an increasing awareness of the health and safety harms from alcohol abuse. Government should consider using monetary penalties imposed on licensees to fund this initiative. Enforcement and compliance Enforcement of and ensuring compliance with liquor laws and regulations is complex. Government expects licensees will comply with the laws, but there must be inspections and penalties sucient to act as a deterrent. Finding the right balance is challenging. The current penalty system was implemented more than a decade ago, and there have been few changes since. As a result, I am recommending a thorough review of the penalties and changes to the enforcement hearing process. The LCLB already has its Minors as Agents program to encourage compliance; since it was brought into place in 2011, it has had a significant impact. Through this program, young people, usually 17 or 18 years old, are hired to test private and government liquor store and licensee compliance with the law against selling liquor to minors. In the last two years, compliance rates have risen from 29 per cent (before the program began) to 71 per cent. While this program can continue to help improve and monitor compliance among liquor retailers, there is also the consideration that the public must participate and follow the law. For underage youth who are caught buying liquor with fake identication or through a third party, penalties must be sti enough and consistently enforced. Currently, the ne sits at $230. B.C. Liquor Policy Review Final Report 11 Tis is not a one-sided situation. Te fact is that some underage youth consciously violate the legislation, using illegal activities (e.g., false IDs) to try to buy liquor and enter restricted premises. I recommend enforcing those penalties, as well. Education and enforcement are key. Te businesses that make their profts selling alcohol to the public have an obligation to both their patrons and society in general to acknowledge the addictive/destructive potential of their wares and to sell it in a responsible way. Likewise, individuals should be held accountable for their actions (e.g., public drunkenness or rowdy behaviour), both to discourage these actions as well as to bring their problems to the attention of members of society who can help them. Chuck, Oct. 15 Recommendations: 10. Government should encourage police to use the enforcement tools of ticketing and nes more frequently for those people under 19 years of age who are caught possessing liquor, using false identication or being in restricted premises selling liquor. Liquor retailers and the public should also be made more aware of the severity of these penalties. 11. Government should review enforcement penalties of LCLB and other jurisdictions to ensure that B.C.s penalty levels are appropriate. 12. Due to the varying size and focus of licensed establishments, consideration should be given to how dierent types of penalties (e.g., a suspension versus a monetary penalty) may impact a licensee and staff. 13. LCLB should work with police agencies to explore implementing last drink programs across B.C. on a more concerted basis. If an impaired persons last drink was in a licensed establishment, LCLB can investigate and possibly levy penalties for overserving clients. 14. LCLB should have the authority to regulate the home delivery of alcohol and should consider that home delivery service providers require SIR certification. 15. Applicants and licensees seeking a review of LCLB decisions should have access to a new and separate decision-making body outside the licensing branch. The Ministry of Justice should review current processes and determine how best to provide independent decision-making for those seeking appeal. V i g n e t t e : British Columbia Ministry of Justice 12 Vancouver Police Department Ride Along ln lote Octooet, l sent the n|ht ottoll|n voncouvets entetto|nment J|stt|ct w|th the voncouvet lol|ce 0eottment. 7he entetto|nment J|stt|ct hos town Jtomot|colly ovet the ost lew yeots. ln zoo8, thete wete only ),8oo l|quot-l|censeJ seots |n o ve-olocl sttetch ol Ctonv|lle 5tteet, comoteJ w|th ::,zoo toJoy. 7h|s wos not the tst t|me lve oeen exoseJ to eole Jt|nl|n too much, out whot teolly stt|les you |s the sheet numoet ol eole. 7he Ctonv|lle 5tteet oteo |s un|que to 8.C. onJ even |n ConoJo. lven |n the eotly houts ol the motn|n, thete wete tooooly o coule ol thousonJ eole who hoJ come ltom oll ovet tes|Jents ltom oll the voncouvet suoutos, tout|sts ltom octoss the wotlJ, onJ youn eole ltom 5eottle. 7he lottet tole etowoy weelenJs |n voncouvet oecouse the Jt|nl|n oe |n wosh|nton |s z:. 7hese lote numoets ol eole ote not o toolem. ln loct, we encoutoe eole to enjoy the c|ty onJ ottole |n the entetto|nment oottun|t|es. 8ut whot J|J stt|le me wos thot whete we J|J see toolems, we olso sow lots ol youn eole who wete Jt|nl|n onJ ovet-consum|n. wh|le most eole wete ol leol Jt|nl|n oe, l heotJ stot|es ooout how m|nots (unJet :p} tty to et ost checls onJ secut|ty |nto l|quot stotes onJ cluos. l wos |mtesseJ oecouse oy onJ lote, th|s |s teosonooly well-conttolleJ. 7he ooJ oetotots lnow they hove to oe on uotJ, onJ they ote. 7heyte vety ooJ ot sott|n lole l0s. 7hot so|J, th|s exet|ence te|nlotceJ sevetol th|ns lot me: we neeJ to teulote vety cotelully, l|cens|n neeJs to oe tooust, onJ we neeJ to mole sute eole tov|J|n olcohol setv|ce ote eJucoteJ |n the|t tesons|o|l|ty not to ovetsetve. wh|le th|s |s on extteme exomle, w|th the Ctonv|lle J|stt|ct host|n the lotest concenttot|on ol l|censeJ seots |n 8t|t|sh Columo|o, commun|t|es octoss the tov|nce loce s|m|lot |ssues on o J|lletent scole. 7hots why |ts |mottont thot we tomote eJucot|on onJ cont|nu|n eJucot|on wh|le ensut|n we st|ll enlotce the tules. October 19, 2013 meeting with the Vancouver Police Department B.C. Liquor Policy Review Final Report 13 Pricing Health advocacy organizations (including The Centre for Addictions Research of BC, University of British Columbia, The Health Ocers Council of British Columbia and B.C.s Provincial Health Ocer) have presented evidence that minimum price policies are eective in reducing alcohol abuse by at-risk groups. They have advised government to set minimum prices based on alcohol content. This report recommends changing regulations to set minimum prices for happy hours and linking the price of liquor to the percentage of alcohol. @kpalak87: Give our tourism a boost we should strongly consider allowing Happy Hours in BC. Bars being able to change price for a short time. #bcliquor Recommendations: 16. Permit licensees to oer time-limited drink specials (e.g., happy hours), provided the price is not below a prescribed minimum consistent with those supported by health advocates. 17. LDB should review its minimum pricing policy as it applies to all categories of liquor so that minimum prices are set at an appropriate level. 18. LDB should consider tying minimum prices to the amount of alcohol (e.g., a beer with seven per cent alcohol would have a higher minimum price than a beer with four per cent alcohol). September 16, 2013 meeting with the Health Ocers Council of BC British Columbia Ministry of Justice 14 Retail and Convenience British Columbians enjoy the responsible use of alcohol, buying a wide range of wine, beer and spirits especially those produced in our own province. In the 12 months ending September 2013, British Columbians bought 32.7 million litres of B.C. wine and 31.4 million of imported wine. B.C. craft beers are gaining popularity: 10 new breweries opened across the province since Jan. 1, 2013 and many applications are in progress. There is also a growing interest in B.C. spirits. There are 19 distilleries and craft distilleries (those producing with 100 per cent B.C. agricultural inputs) currently operating in the province. This is a new industry with signicant potential for long-term growth. Eighty per cent of alcohol sales in B.C. are for personal use, through BC Liquor and private retail stores. There are a total of 1,147 liquor retail outlets in the province: Most alcohol sales (48 per cent of dollar value) are through 195 government liquor stores. They are operated by the provincial LDB across the province and sell all types of liquor. Private retail stores were introduced in 1985. Initially, they were restricted and sold only beer and wine. In 2002, they began selling spirits. There are 670 private retail stores in B.C., selling 41 per cent (dollar value) of retail alcohol. In 2002, a long-standing moratorium on new licences was temporarily lifted, resulting in the licensing of almost 400 new stores. The moratorium was reintroduced and the number of stores in B.C. has remained constant. Private retail stores have adjusted to changes as the marketplace has evolved, showcasing B.C. liquors and consistently looking for new opportunities to expand. British Columbia has developed a vibrant and quality wine-manufacturing industry. Wineries sell directly to the public, to licensees and to liquor stores. In addition, the BC Wine Institute has been issued 21 store licences throughout the province to sell Vintners Quality Alliance (VQA) wines produced by many of the provinces wineries. As British Columbians have become more educated about and interested in wine, these specialty stores have cultivated a strong niche market. The 221 rural agency stores in B.C. provide a convenience for people in rural and isolated resort areas who are not served by a government or private retail liquor store, and hold only a four per cent share (dollar value) of the retail market. Their delivery model is unique in B.C.: bottles of beer, wine and spirits are sold alongside food, household supplies, newspapers, magazines and other general consumer goods. rural agency stores are important contributors to the development of rural communities throughout the province; they meet the needs of convenience and choice expected by many consumers today. BC Liquor Stores Sales by Region (/) Vancouver Island and Coast 5|t|ts: soz.pm w|ne: s8:.:m 8eet: s,,.om Mainland and Southwest 5|t|ts: sz:{.;m w|ne: sz8;.;m 8eet: s:8;.;m Thompson Okanagan 5|t|ts: s;p.8m w|ne: s,:.om 8eet: s;o.8m Kootenay 5|t|ts: s:,.)m w|ne: s:{.pm 8eet: s:p.,m Cariboo 5|t|ts: s:,.8m w|ne: s:o.,m 8eet: s:;.om North Coast 5|t|ts: s,.{m w|ne: s;.om 8eet: s,.:m Nechako 5|t|ts: s;.8m w|ne: sz.8m 8eet: s,.)m Northeast 5|t|ts: s).om w|ne: s{.,m 8eet: s).8m Total Spirits: $.m Wine: $.m Beer: $.m B.C. Liquor Policy Review Final Report 15 @BobBrayCR: The store within a store concept for beer and wine sales is working very well on Quadra Island. #bcliquor #bccp #bcpoli #leadbcc As with all retail markets, convenience is a key decision point for consumers. The resounding message I heard throughout the Liquor Policy Review was the rmly held public view that alcohol sales in British Columbia do not meet the needs or expectations of most consumers. We strongly support broad modernization of our liquor laws. Specifcally, we support broader distribution at regular retail outlets (grocery stores, warehouse outlets) and new, creative places (hair salons, spas, retail shopping, farmers markets; anything that is fun and new), competition on selection (allow merchants to source in the open market), price, and convenience. We disagree in the strongest terms possible that the above changes will increase irresponsible behavior; see Europe as a model that trusts its citizens to behave while providing harm reduction services in parallel). In summary, enough of the Nanny-State; allow creativity and enjoyment to fourish in BC, tax revenue to be raised, and social services to beneft as a result. Mark, Sept. 29 Increased convenience for consumers Allowing liquor to be sold in grocery stores drew more public interest and comment than any other topic examined in the Liquor Policy Review. By the end of our public engagement process, almost 75 per cent of people commenting on grocery were generally in favour of changing the regulations to allow for access to liquor products in grocery stores. Some B.C. residents are already very familiar with the convenience of buying liquor along with their groceries and other household supplies. Since the 1970s, British Columbians in rural communities have bought beer and wine at rural agency stores. They currently have a unique status, and their customers are well-accustomed to the convenience of one-stop shopping near their homes. @badkaren67: @John_Yap pls keep in mind that big cities & small towns r NOT the same. One size does not ft all #bcliquor British Columbia Ministry of Justice 16 Urban British Columbians do not enjoy this same convenience, and this issue was raised repeatedly on the Liquor Policy Review website. British Columbians are more exposed than ever before to ideas in other jurisdictions. People are very much aware that when we compare our liquor policies with others parts of North America and around the world, ours is much more control-oriented, more restrictive. I repeatedly heard comparisons with shopping for wine and beer in Washington, Oregon and California, in Ontario, Quebec and Nova Scotia, and across Europe. I would love to be able to purchase beer and wine at grocery stores. Especially with the boom in local craf breweries and an increasing focus on buying local, it would be wonderful to be able to buy my food AND drinks fom the same store, that ofers local goods. 90% of my purchasing is beer and wine, and I am happy to go to liquor-only stores for the other 10%. Caitlin, Oct. 10 Each of these jurisdictions has its own history with the regulation and sale of alcohol, and each has developed its own retail model. Some, such as France, treat alcohol particularly wine as part of the meal. Alcohol is on the grocery shelves, with no retail restrictions. Other jurisdictions, such as Nova Scotia, meet the customers demand for one-stop shopping with a government liquor store beside or even inside the grocery store, with an open doorway connecting the distinct liquor and food outlets. My conclusion is that todays retail model has not kept pace with consumers expectations. October 2, 2013 meeting with the Alliance of Beverage Licensees B.C. Liquor Policy Review Final Report 17 British Columbians have communicated that they want more convenience. The response to this expectation by consumers should be tailored to the British Columbia marketplace. Key considerations include: In 2012, the moratorium on expanding the number of liquor retail store licence holders was conrmed and will remain in place until 2022. Any recommendations for new retail models must meet this requirement that the total number of licences does not exceed 670. British Columbia has a thriving wine industry, a growing craft beer industry and an emerging artisan spirit sector. British Columbians are loyal to B.C. producers and are keen to buy local, regional and provincial liquors that showcase exceptional B.C. products. British Columbia has a complex retail environment for alcohol sales. Developing a new sales model will have to respect the mixed public and private marketplace, and the signicant investment these businesses have made in terms of both direct nancial investment and job creation. It will also mean greater exibility may be needed around the business model and hours for private licensees. The production, distribution and sale of B.C. liquors is a signicant contributor to the economy, contributing more than $1.1 billion to the Province. One of the most important points to emerge in the Liquor Policy Review conversations is the signicant gap between how consumers live today, the dramatic shift caused by online purchasing, and how little the alcohol sales model in British Columbia has changed. British Columbians do not have the same luxury of time that they used to have, and many have radically altered the way they shop. As more alternatives become available, consumers are increasingly frustrated with the time-consuming chore of travelling to several locations for their purchases. Thats why government should look at consistency in operating hours for licensed, rural agency and manufacturer retail stores. @hed3393: Buying booze in grocery stores would be way more convenient #bcliquor @erinmct: Lets get liquor in BC grocery stores. Its long overdue @John_Yap #bcliquor @BC_Deb: @John_Yap It is quite a long drive to the nearest govt. liquor store, for me, and I am in Victoria! Grocery Stores are everywhere #bcliquor @carolynjohnst16: #liquor sold in the grocery stores?! #bcliquor good idea but #regulation needed. British Columbia Ministry of Justice 18 Beyond that, maintaining the current number of retail liquor outlets while allowing sales in grocery stores may require a new exibility for the licensed retail stores, such as allowing them to relocate or transfer/sell their licences. Government-owned BC Liquor Stores will also be impacted by a new grocery retail model; those stores, too, should have the ability to be part of a new approach. Throughout my consultations, I heard from individuals and groups that people prefer our mixed model, with both public and private retail stores. The public engagement process left a very clear impression: British Columbians want the convenience of buying beer and wine with their groceries. While government and industry should meet the demands of the changing marketplace, we also need to recognize the challenges for private and public retail stores to adapt quickly to new business models. Consideration must be given to a phased-in approach. Any grocery model must, at a minimum, maintain the current revenue to government from liquor sales and respect the obligations that exist in current collective agreements. As part of this new retail approach, B.C. products should continue to be featured and highlighted. Supporting B.C. manufacturers and products meets consumer demands and contributes to the provinces economic development. Communities that have rural agency stores appear to already oer a level of convenience for customers perhaps even beyond what British Columbians are looking for in the rest of the province. As that is the case, I would not anticipate any new grocery model to impact these retailers. In fact, I would suggest that those communities with rural agency stores should be able to maintain their current model once a new grocery model is introduced in other communities. I am not recommending alcohol be made available in convenience stores outside of the rural agency store (RAS) model. Finally, as noted earlier, the Centre for Addiction and Mental Health has ranked B.C.s alcohol policy as the second best in Canada in terms of health and safety. This existing regime that protects health and public safety supports B.C. maintaining its moratorium on new retail liquor licences and acknowledges the safety benets of continuing to put thoughtful restrictions on minors access. According to the BC Wine Institute, B.C. has wineries (up from in ) and more than vineyards on more than , acres of land. B.C. Liquor Policy Review Final Report 19 Recommendations: 19. The Province should develop and implement a retail model that meets consumer demands for more convenience by permitting the sale of liquor in grocery stores. Government should continue to restrict the total number of retail outlets and require separation of grocery products and liquor. This reects the views of health and safety advocates and the acknowledged safety benets of restricting minors access to liquor. 20. Introducing liquor in grocery stores should be phased in, giving public and private liquor stores time to adjust to the new retail model. 21. In consultation with industry, government should develop a policy that standardizes the types of non-liquor products that can be sold in liquor retail outlets. 22. As a grocery model is developed, government should look at consistency in operating hours for licensed, rural agency and manufacturer retail stores. I believe that alcohol should be sold in grocery stores, much like tobacco is (at customer service counters, behind the till where its inaccessible for minors to steal). Adults should be able to purchase liquor the same way we purchase food and tobacco, it makes sense. It will not increase the amount that I drink, but make it more accessible for me to purchase it without having to fnd the closest liquor store that has restricted hours - which is another thing I think should change. Sell liquor past 11. Alberta vendors can sell it until 2 am. If people coming home fom the bar, who want to stay up longer, can purchase liquor on the way home or to the afer party, it will reduce binge drinking and eliminate the mentality of get it while you still can. Claire, Oct. 9 I will also add my comment requesting grocery stores be allowed to sell beer and wine. While I think everyone asking recognizes there are potential problems that need to be addressed, we see that this is well managed in other countries. Even here in B.C., tobacco sales have similar challenges. But controls are in place to reduce the risks associated with having tobacco in grocery stores. Im sure with all the smart people looking at this you can fnd a way to manage the risks with alcohol as well. Mark, Sept. 26 British Columbia Ministry of Justice 20 Economic Growth, Jobs, Tourism and Marketing Tourism is one of the leading drivers of British Columbias economic growth, diversity and vitality. Tourism revenues are valued at more than $13.4 billion per year, and more than 126,000 people work in the industry the equivalent of almost one in every 15 jobs in B.C. As mentioned earlier, B.C.s liquor industry is one of the leading contributors to tourism. B.C.s liquor industry is worth $2 billion in economic impact and, according to the B.C. Wine Institute, every bottle of wine produced here is worth $42 in economic impact. @ryanonthecoast: #bcliquor @John_Yap Brewing, distilling & winemaking are all entrepreneurial in nature. Nurture them, and they will flourish. This not only brings new money to British Columbia and creates new jobs; it also contributes signicantly to provincial tax revenues. B.C.s wine industry alone brings in more than $298 million in federal and provincial taxes and LDB markup. There is a caution. Tourism dollars are discretionary in nature people who come to B.C., or British Columbians who visit other parts of the province, can easily choose to spend their vacation budget somewhere else. This reinforces the need to understand marketplace realities and continuing to oer compelling reasons to visit and explore British Columbia. Fortunately, we can learn from many established examples. Several presenters to the Review referred to successes other jurisdictions in the Pacic Northwest have had building strong, local wine- and brewery-based tourism opportunities: Walla Walla, Washington is widely recognized as a top wine destination in the United States. Portland, Oregon is developing a strong reputation for its thriving craft beer and brew pub development. With more than 50 locations in Portland, this new brewing industry draws signicant numbers of tourists, creating new economic development opportunities for the city and the surrounding region. @allisonmmarkin: Look to the town of Walla Walla, Wa @John_Yap for their model of offsite tasting rooms. Excellent for tourism. #bcliquor V i g n e t t e : B.C. Liquor Policy Review Final Report 21 Shelter Point Distillery l|tst, the w|ne |nJustty J|J |t. 7he m|cto- oeet |nJustty |s lollow|n qu|clly, onJ now, the J|st|ll|n |nJustty |s teot|n |ts loce os o sec|olty |nJustty onJ tout|sm Jtow. wh|le the J|st|llety sectot Joesnt yet hove the co|tol, the econom|es ol scole, the oetot|ons exet|ence, the J|stt|out|on cooc|ty ot the monoement exett|se tequ|teJ, new oetotots ote mol|n o| lons. 5heltet lo|nt 0|st|llety |s one exomle. lt hos z88 octes ol ootley elJs onJ oetty ctos, o J|st|llety w|th two commetc|ol st|lls, onJ o t|me voncouvet lslonJ locot|on ovetlool|n Ceot|o 5tto|t. ln h|s tesentot|on to the kev|ew, ownet lott|cl lvons commun|coteJ the|t enthus|osm: voncouvet lslonJ hos oll the |nteJ|ents the technoloy, the temetote cl|mote, the ute wotet onJ the oss|onote eole necessoty to cteote some outstonJ|n wh|sl|es. lvons oouht the lotm |n zooo. 5o|l onJ cl|mote stuJ|es Jetetm|neJ thot the oest onJ h|hest use ol the lonJ woulJ oe to tow ceteol ctos |n ott|culot, ootley. 7he quest|on wos how to mole the oest onJ h|hest use ol the ootley. 7he onswet |s wh|sley, so the ownets went to 5cotlonJ to leotn onJ ouy equ|ment ltom the oest |n the wotlJ. 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Vy hoe |s thot tecommenJot|ons l|le ollow|n toJucets to sell onJ somle the|t toJucts ot lotmets motlets, onJ ut|n 8C l|quot 5totes to tomote locol toJucets, w|ll hel tutn J|st|ll|n tem|um wh|sley |nto o new 8.C. |nJustty. British Columbia Ministry of Justice 22 One of the things that draws me to go down to places like Seattle and Portland is the number of Brewpubs or Brewery owned bars that showcase their local stuff. ... What I would like to see is an increase in the licences that are available for Brewpubs. Tis is a great way to bring locals and tourists into the areas, and every time that I have gone down south, a lot of the people I meet at local brewpubs are people fom out of town who have heard about the beer, or are excited to be able to have a beer in the same place it was made, and actually see inside the brewery. Nick, Sept. 30 Promote B.C. products Showcasing locally and regionally produced wines, beers and spirits encourages British Columbians to buy local, attracts visitors, and provides signicant spin-o jobs for small businesses across the province. The following recommendations, as well as those urging increased exibility for on- and o- site liquor sales and sampling, will support liquor-producing, agricultural and small business sectors across the province. Recommendations: 23. LDB should improve its marketing of B.C. liquor products in stores, developing new opportunities for product placement and innovative promotional and educational materials. 24. Government should work with industry and tourism associations to develop promotional materials such as maps, apps and brochures on B.C. wineries, breweries and distilleries. 25. Government should work with other Canadian wine-producing jurisdictions to jointly develop thematic wine promotions in each jurisdictions liquor stores to promote Canadian wine. 26. Government should discuss establishing a quality assurance program for B.C. craft beer and artisan-distilled spirits (similar to the VQA wine program). British Columbians enjoy more than million glasses or million bottles of Canadian wine each year. B.C. Liquor Policy Review Final Report 23 Manufacturer sales and sampling The British Columbia wine industry is a resounding success story. Until the 1980s, it had a well- known reputation for poor quality. With vision and foresight, high-quality grapes were planted and there were signicant investments in people and facilities. The industry has matured setting high standards, meeting them, and bringing worldwide recognition to B.C.s relatively young vineyards. Today, British Columbia is a renowned wine producer and the benet of that experience is being passed on to the emerging brewery and distillery industries. One of the important marketing lessons we have learned is the value of promoting on-site and o-site sales and sampling to promote both individual liquor brands, and the region as a whole, as a tourism destination. The current liquor licensing process around allowing people to sample B.C. liquors is unduly complex and rigid. This is a signicant marketing challenge for producers, many of whom are small businesses, and is a signicant impediment to the expansion of the provinces agritourism industry. Currently, owners can apply for a food-primary, liquor-primary or SOL, as well as special endorsements that allow visitors to drink alcohol on the manufacturers premises. Some endorsements are for simple and straightforward activities, with little potential impact on the community (a small picnic area in a vineyard where clients can enjoy lunch with a bottle of wine, for example). Others can create noise, trac congestion or have other signicant eects on neighbours (a large lounge, musical performances or wedding receptions that run late into the night every weekend). Each licence and combination of endorsements has a dierent cost, application process and set of restrictions, such as for moving alcohol from one area to another. While streamlining regulations around sales and sampling at the vineyard or the brewery may be good for business, I am also aware that any review of those regulations must be clearly dened and carefully introduced. Many of our wineries, distilleries and craft breweries are located in neighbourhoods and care must be taken that they dont disturb the community with noise and other inconveniences. September 30, 2013 meeting with the BC Craft Brewers Guild British Columbia Ministry of Justice 24 A situation unique to British Columbia is the role of the Agricultural Land Commission (ALC) in the production of alcohol, particularly wine. Wineries on ALC land may only sell wine they have produced. There are also restrictions around the size of lounges. Many presentations, particularly from manufacturers, spoke of the signicant requirements and criteria that need be met to obtain a manufacturers licence for beer, wine or spirits. While high standards must be required for any approval related to alcohol production, there may be opportunities for manufacturers and LCLB to streamline the approach. This should be consistent with the Liquor Policy Reviews Terms of Reference (see Appendix B) that refer to a more responsive licensing system and providing greater exibility for businesses. In the Okanagan, there are some winery owners who are moving into residential areas, sometimes frstly with tasting licences and then applying for lounge endorsements. Te tasting endorsement is so much diferent than the lounge endorsement or even special event licensing, situated in the midst of families with children of all ages, creating the possibility of drivers in these neighbourhoods who are no longer just tasting but drinking substantially more alcohol, with or without food. I am writing to encourage you to be careful to continue to keep these applications separate and give the communities impacted by these applications an opportunity to support wineries at the level that is appropriate for each residential area. Mary, by email Recommendations: 27. Manufacturers should be able to establish low-risk tasting venues such as a picnic area as part of their existing licence without the need to apply for a specific endorsement. Government should work with industry, local government and First Nations to increase exibility for tasting options for manufacturers while being sensitive to potential negative impacts, such as noise, on the community. 28. Allow manufacturers to oer patrons liquor that was not produced on site (e.g., a winery could sell a beer to a visitor). 29. Government should consult with the Agricultural Land Commission about amending the Agricultural Land Commission Act regulations to allow manufacturers operating within the Agricultural Land Reserve to allow more people in consumption areas (e.g. lounges) and to sell liquor that was not produced on site. B.C. Liquor Policy Review Final Report 25 30. Government should consult with industry and review the minimum requirements to obtain a brewery, winery or distillery licence. Government should also consider how these requirements are regulated by LCLB and LDB to ensure transparency and an eective regulatory system. O-site sales and sampling B.C. liquor manufacturers are developing new reputations as producers of high-quality and world-class wines, beers and spirits at a time when British Columbians and visitors are increasingly interested in regional, craft and artisanal products. Specialty food stores featuring both imported and local products are gaining popularity, and farmers markets featuring produce from nearby elds continue to be welcomed into urban neighborhoods. These trends are driving a growing interest among manufacturers in developing convenient tasting rooms and retail outlets closer to population centres. Allowing manufacturers to open permanent storefronts in town or set up temporary booths at a local farmers market gives residents and visitors an opportunity to sample local liquors and support local producers. Both citizen groups and manufacturers have urged the provincial government to allow this exibility, promoting local tourism, new economic development opportunities and convenience for consumers. I would like to see every local winery have the right to have a storefont in the central business district. Tis would revitalize downtowns, keep retail trafc in the business area where infastructure exists to accommodate parking and provide a vibrant wine district to promote sales. Having patrons drive all over rural areas to visit each winery for tastings seems kind of unsafe. Ian, by email If recommended o-site sampling changes are implemented, servers will be required to have Serving it Right. As well, sampling at farmers markets and other o-site locations will be subject to limits on the amount that can be served. I think allowing the sale of craf beer, wine and distilled products at farmers markets and festivals is a great idea. It allows the small-scale producers an opportunity to directly consult with their customers determining what works, what doesnt, and what can be improved. Tat kind of market intelligence is what makes the diference in staying in business or for expanding a business. As a customer, it would be a great way to support local craf producers, just like supporting local farmers cheese makers and bakers. Tracey, Oct. 29 British Columbia Ministry of Justice 26 The following recommendations strike the balance between allowing liquor producers to promote sales and product sampling on site; permitting customers to explore and enjoy wines, beers and spirits where they were produced; and the health, safety and social responsibility issues inherent in potentially broadening access to alcohol. @CanneryBrewing: We would love to see #beer available for sale at #FarmersMarkets #BCliquor @John_Yap @govTogetherBC #growlerstogo Recommendations: 31. Government should permit B.C. liquor manufacturers to oer products for sample and sale at temporary o-site retail locations (e.g., farmers markets), with appropriate conditions. The decision about whether to allow vintners, brewers and distillers to showcase their products at a particular location will be left to the location management (e.g., farmers market association). 32. Allow patrons to buy bottles of liquor to take home that are showcased at festivals or competitions. Consider amending SOLs issued to festivals and competitions, or allow BC Liquor or private retail stores to operate a temporary store on site as the means to provide for these sales. 33. Allow manufacturers to have o-site locations where they can sample and sell their products to the public (e.g., permanent tasting rooms in a downtown store). I recently made a trip to Portland this summer. I had the pleasure of making it to their Saturday market which is also open on Sunday and refects a more artisan style market with food trucks and craf beer available. Its a great attraction with music and a small water park nearby for children. I think a great pairing for the famers market would be a craf beer/wine area with small glasses and a more tasting atmosphere for the foodies that fequent the markets like myself. Of course it comes with all of the regulations and designated area and a few on lookers to see the festivities are contained. Even if its limited to the summers, I feel this could really be a great way to bump up our craf beer industry as well as local economy boost for those businesses. Victoria, Oct. 3 B.C. Liquor Policy Review Final Report 27 Licensing and Cutting Red Tape The rst beer parlour licences in British Columbia were issued in 1925. They were only given to hotels, and only one brand of beer could be sold at a time. These beer parlors could not oer food or non-alcoholic drinks. Entertainment, singing and games were not allowed. Patrons had to sit down to drink. Over the past 88 years, both the alcohol industry and expectations of British Columbian consumers have changed significantly. The industry has matured and customers are demanding more convenience. New liquor licences have been created, and existing ones altered and adjusted many times. Individual amendments were developed for good reasons at dierent times, but today, there are gaps and conicts in the regulations. Over the decades, the licence process has become complicated, onerous, and often, no longer meets the needs of consumers, retailers, producers and local governments. I am recommending substantial changes to B.C.s food-primary, liquor-primary and SOLs, with the goal of removing outdated and counter-productive restrictions. This will allow both businesses and the LCLB to meet the needs of their customers, while striking the balance with public health, safety and social responsibility. Liquor-primary licences As of March 31, 2013, there were 2,317 liquor-primary licences in British Columbia. In order to qualify for a liquor-primary licence, the businesss primary purpose must be liquor service, entertainment or hospitality. All establishments serving alcohol in British Columbia must choose between a liquor- or food-primary licence. If a business decides to operate a liquor-primary business (e.g. pub, club or bar), people under the age of 19 cannot enter, with limited exceptions. This can have the unintended consequence of actually limiting the number of dining opportunities for families, especially in rural communities where there may not be many options and alternatives. @marquisWineCell: Years ago I was on Bowen Island & had to get food to go from the pub as my children were not old enough to sit inside While I have recommended changes to allow for greater exibility with regard to kids in these establishments, many will wish to maintain their current business model, and they should be free to do so. LCLB will evaluate those who want to amend their licences. @NVbigblackford: #bcliquor A very positive change would be allowing families to eat at pubs before a certain hour as is done in Alberta. British Columbia Ministry of Justice 28 It is also worth noting that many establishments with a liquor-primary licence have invested heavily in providing a pleasurable experience for their customers. They are justiably proud of the food they serve, and the atmosphere in these facilities is often very similar to that in a restaurant with a food-primary licence. One of the laws I d like changed is the ability to bring minors into your neighbourhood pub. Some pubs/tapas bars serve great food. Some have live entertainment. It would be nice to be able to bring your children into these establishments to have a bite to eat and/or listen to some music. I dont know how many times my husband and I have been out for a drive with our (underage teen) daughter and wished we could pop into our favourite neighbourhood pub for a snack, but couldnt. Tese silly laws designating what is an eating establishment, that serves alcohol, and allows minors, and what is considered a pub or bar, although food is being served, need changing. If you have a kitchen, and a menu you are a restaurant, regardless of alcohol being sold. J., Sept. 21 I own a rural pub, restaurant and lodge in rural BC. When we purchased, almost six years ago we recognized the need to focus on food, and worked to change our pub licence to a pub licence plus licensed family dining. We complied with all the rules, restrictions, building requirements, etc. (no small feat - we were one of the frst to transition), and, for a couple years now, have been operating a pub and licensed restaurant in the same room, divided by a raised platform (one short step up) and a four foot railing. As we operate the pub and restaurant in the same room, adult entertainment restrictions were placed on the pub licence. When I applied for the licensing changes the process was extremely complex and difficult. Te staf at Liquor Licensing were amazing, and knew they were dealing with legislation and departmentalization in desperate need of an overhaul. I saw numerous opportunities for simplifcation of the bureaucratic process that would still comply with important issues Te irony is, in my one room facility I now have much more feedom to serve liquor in my licensed family restaurant than I do in my pub. Simply based on where you are seated in my facility you may or may not be allowed alcohol B.C. Liquor Policy Review Final Report 29 For me, the service of liquor is not the big concern. My alcohol sales have dropped dramatically (in half) since we opened fve years ago, and it is rare someone orders a drink before 11am. Te closing down of the pub seating for one hour during breakfast service, is inconvenient, and fankly makes no sense. It also illustrates the need to simplify and consolidate the licensing process so that, minimally, the rules are being applied uniformly in the same room. Robin, by email Food-primary licences There are some 5,600 food-primary liquor licences in British Columbia. Regulations state that the business establishment must be focused on food service at all hours, when the liquor licences are in play. However, not all customers want a meal especially those arriving later at night and food-primary establishments can nd it challenging to remain compliant with the regulation, and still serve their customers. @WestEndCitizen: @John_Yap : Sometimes u wnt to stand at a bar (not sit) and enjoy a quick drink after work, without intention of buying food #bcliquor Stop with the having to order food with a drink in any circumstance; what is the reasoning behind it? Every time this has happened to me and my fiends we are confused as to why, and then we order the cheapest thing on the menu. At least a couple of times we didnt even eat the food because we just came fom dinner elsewhere. Andy, Oct. 3 Some establishments would like to switch from a food-primary to a liquor-primary licence at a specic time to appeal to more customers. Currently, this is not allowed. There are also restrictions around who can apply for a food-primary liquor licence. Only businesses that want to operate primarily as a restaurant, caf or other food-related service can apply for a food-primary licence. For example, a gallery is currently not allowed to open a caf with a wine list on its premises. Broadening the eligibility for liquor licences may attract more applicants, leading to new venues and potentially, more alcohol consumption. I have looked closely at similar experience in Ontario and anticipate that the number of applications will not increase dramatically in British Columbia. Local governments and First Nations will continue to have input into the application process for liquor-primary licences in their communities, and ultimately, LCLB will assess all applications. It will not issue a licence if it believes it is contrary to the public interest. British Columbia Ministry of Justice 30 @hed3393: @John_Yap Allow other business the opportunity to be licensed. Cooking schools, wedding dress retailer etc. #bcliquor Earlier in this report, I recommend that the Serving it Right program be extended to all hospitality industry workers serving alcohol. This would include, for the rst time, all servers in British Columbias 5,600 licensed restaurants. Recommendations: The liquor-primary and food-primary licence classes for on-premise consumption should be retained, with the following signicant changes: 34. Minors, if accompanied by a parent or guardian, should be permitted in certain liquor-primary establishments. o. Covetnment shoulJ estool|sh o teosonoole t|me (e.., unt|l 9 .m.} thot tesects ooth the lom|lys cho|ce to |ncluJe m|nots |n some events onJ the estool|shments tesons|o|l|ty to ensute on otot|ote env|tonment lot oll. o. l|censees shoulJ cont|nue to hove the ot|on ol on oJult-only estool|shment. c. lot those estool|shments thot cuttently oet om|n ot|ons, lCl8 shoulJ hove the outhot|ty to otove ot Jeny whethet m|nots ote to oe olloweJ ooseJ on o m|nots otent|ol occess to om|n. V|nots shoulJ not oe etm|tteJ |n cos|nos ot commun|ty om|n centtes. As well, m|nots shoulJ not oe olloweJ |nto estool|shments thot oet oJult entetto|nment. 35. The LCLB should clarify and modernize regulations with respect to food- primary operations, including lounge and kitchen requirements. 36. Food-primary licensees should continue to focus on food service, with a full menu available whenever liquor service is available. However, patrons should not be obligated to or made to feel like they must order food if they do not wish to eat. 37. Food-primary enterprises that wish to fully transition away from food service after a certain hour (e.g., 9 p.m.) if, for example, they wanted to operate as a nightclub will be able to apply for a licence endorsement, allowing them to operate like a liquor-primary licence during those hours only. o. V|nots woulJ not oe olloweJ |n the estool|shment oltet thot t|me. o. 7o teect the otooch tolen on l|quot-t|moty l|cences, locol ovetnment onJ tes|Jents shoulJ oe consulteJ os ott ol the otovol tocess. 38. Food- or liquor-primary licences should be available to other types of businesses, allowing a range of new establishments (e.g., spas, cooking schools, and galleries) to oer liquor to their clientele as an additional service. B.C. Liquor Policy Review Final Report 31 Licence applications and the role of local governments and First Nations Local governments and First Nations have a signicant role in the licence-approval process in their communities most critically for liquor-primary applications. The linear approval process that is in place currently is very time-consuming. Right now, when a business applies to LCLB for a food- or a liquor-primary licence, the LCLB rst determines whether the applicant is eligible to hold a licence. For a liquor-primary licence, the LCLB then prepares a report on the application and forwards it to the local government or First Nation. They are asked to gather the views of residents who might be aected by the proposed establishment and make a recommendation about whether the application should be approved. Their comments are sent back to the LCLB, which then decides whether the licence application can proceed to licensing. These linear processes are very time consuming, often taking upwards of a year and/or longer to complete. Provincial legislation prevents the applicant from speeding up the process by submitting applications to LCLB and the local government or First Nation at the same time. B.C. is only jurisdiction in Canada with such a process. A second issue is that LCLB regulations determine what criteria local governments and First Nations must use to evaluate whether the applicant meets community standards. Recommendations: 39. Government should consult with UBCM, local governments and First Nations about streamlining the liquor application process. An applicant for a liquor- primary licence should be able to seek input from the local government or First Nation before or at the same time it applies to LCLB. 40. The criteria used by local governments and First Nations to evaluate an application from their community and then make a recommendation to LCLB should be determined by the local government or First Nation. This respects the role of local governments and First Nations in setting standards for assessing liquor-licence applications in their communities. 41. The provincial government should amend legislation so local government councils could, if they wish, give sta the authority to provide recommendations on licence applications (e.g., licence amendments involving a change in hours or capacity) directly to LCLB. This means local government recommendations would not have to be endorsed by a council resolution. 42. In the interest of customer service, First Nations, local and provincial governments should identify target timelines to resolve all applications related to liquor licensing. V i g n e t t e : British Columbia Ministry of Justice 32 Lido Theatre 7he l|Jo 7heotte |n lott 5t. 1ohn |s o closs|c. 8u|lt |n :p,), |ts stoty |s just l|le thot ol mony olJ lm houses |n 8t|t|sh Columo|o set |n the m|JJle ol town, |t wos oeloveJ, well-useJ onJ, oll too olten, ooonJoneJ. 7he l|Jo, howevet, hoJ o chom|on someone who hoJ o o| lon to tev|tol|ze the olJ ou|lJ|n onJ tetutn |t to |ts loce os o centtol ott ol the commun|tys l|le. 8t|on l|tschnet wos ot on 8os tocl oonJ concett ot the locol cultutol centte. 7he mus|c wos lontost|c, out l m|sseJ the exc|tement onJ otmoshete ol o ttue concett. l hoJ o v|s|on ol ouy|n the olJ l|Jo onJ ot|n|n |t oocl w|th the motto: we con Jo thotl Concetts, meet|ns, uol|c sem|nots, mov|es, sott|n events, weJJ|ns, o|tthJoys, lunetols, l|ve comeJy, Cht|stmos ott|es, toJ teun|ons olmost onyth|n. l|tschnet loceJ chollenes ty|col ol o smoll ous|ness w|th o o| |Jeo. lt tool o wh|le to nol|ze the utchose ol the ou|lJ|n, ooto|n lunJs to oetote the ous|ness onJ then et the otot|ote l|quot l|cence. le hoJ h|s toolems, |ncluJ|n o ne onJ o susens|on. 7he h|losohy ol the l|Jo, unl|le oots, uos, tovetns, etc., |s thot we ote only oen touhly lout houts ot o t|me, onJ when oen, the loce |s lleJ w|th oll l|le-m|nJeJ eole, oecouse evetyone who |s thete |s thete oecouse ol the event. Out locus |s entetto|nment tst, l|quot seconJ, l|tschnet exlo|neJ. 7|mes ote chon|n onJ ous|nesses neeJ to evolve onJ constontly chone to meet the neeJs ol the eole you setve. l|quot l|cens|n |s o hue ott ol thot. w|thout the oo|l|ty to sell l|quot, the ous|ness woulJ not oe v|oole, out l|quot |s not the t|moty locus ol my ous|ness. 7hese Joys, the l|Jo 7heotte |s o l|vely loce, onJ thots ooJ news. Almost evety smoll town |n 8.C. hos o lotmet ot mot|nolly oetot|onol mov|e theotte. Ownets moy wont to te|nvent the ous|ness. 7hey lnow they hove o teot venue, o loce whete locol eole con othet, connect onJ oe entetto|neJ. w|th these tecommenJot|ons, we ote mov|n owoy ltom the quest|on: Ate you setv|n looJ, ot ote you setv|n oooze/ Now, the onswet |s Ne|thet. wete setv|n eole. B.C. Liquor Policy Review Final Report 33 Special Occasion Licences The Government of British Columbia issues up to 25,000 SOLs every year. They include everything from small weddings, club meetings and church banquets to sports tournaments, music festivals and wine, beer and spirit competitions/festivals. The sheer volume and range of events makes this a complex licence to apply for and a challenging process to manage. The application process requires the applicant to visit a BC Liquor Store to initiate the application process and to ultimately obtain the licence and purchase the liquor. Between these steps, more than half of the SOL requests require the applicant to physically visit the local RCMP or municipal police station to obtain police approval, even for repeat events and low-risk family events. On occasion, the applicant must also visit local government or First Nation offices. This is a time-consuming burden for all parties. Regulations require that SOLs are only issued to not-for-profit groups. Promoters organizing large public events usually nd a non-prot organization to apply for the licence. These organizations are then responsible for holding the licence. @jlongland: #bcliquor @John_Yap Please do-away with separate drinking areas at public events. Forcing people into a fenced area stigmatizes drinking. SOLs for outdoor public events usually require alcohol consumption to be separated from the main event (e.g., within a fenced-o beer garden). This can encourage over-consumption and detract from the family-friendly atmosphere of a small-scale event. Organizers wanting to serve spirits at a public event with an SOL must pay a $100 non- refundable fee to apply for permission. Permission is rarely denied, and this fee is seen as an unnecessary financial burden. In addition, when you look across the country, B.C. has fallen out of line with other jurisdictions. For example, spirits are available at more public events in the rest of Canada. Other current challenges that I identied are around homemade and UBrew/UVin wine and beer. Right now, they cannot be served at events with SOLs, and families cannot present commemorative bottles of homemade wine to wedding guests, or make no-charge homemade wine available at special events. Finally, I think it is important to address events that happen over several days and several venues (e.g., the Okanagan Wine Festival). Currently, they need a unique licence for every event, and for each day, which adds to the administration and timelines for organizers, BC Liquor Store employees and police without this process resulting in any noticeable benet to public safety. British Columbia Ministry of Justice 34 Recommendations: Application process 43. Introduce online applications to simplify the process. 44. Government should create an annual SOL for organizations that hold occasional meetings or activities throughout the year. Licence holders could store unconsumed liquor for future events. The licence holder would be required to ensure the safe transport and storage of unconsumed liquor product. 45. Event organizers should be able to apply for a single SOL that covers multiple events held over several days at several locations. Role of police and local governments/First Nations 46. Consult with police and local governments and First Nations to nd ways to streamline their role in approving small-capacity, time-limited events (e.g., family wedding) that have little or no public safety risks for their communities. 47. Police should continue to be informed of all upcoming SOL events in their communities. Licensing eligibility 48. Remove the regulation that requires non-prot organizations to apply for an SOL for concerts and events. This will allow promoters who actually manage the event, to be responsible to meet all requirements of the liquor licence. 49. Permit businesses to obtain SOLs to raise funds for charity. 50. Permit hobby brewers and vintners to apply for an SOL to host competition events, allowing homemade beers and wines to be sampled by both judges and the public. Licensing terms and conditions 51. Except where it is not suitable from a public safety perspective, permit whole-site licensing for public events, eliminating beer gardens. 52. Allow the sale of mixed-spirit drinks at public SOL events. 53. Allow hosts to serve UBrew/UVin or homemade beer or wine at SOL events (e.g., weddings, family reunions). B.C. Liquor Policy Review Final Report 35 Fenced in, blocked of beer tents are mocked by tourists and rightfully so. Tey imply that the residents of B.C. are not to be trusted and need to be kept penned up. I think if we adopted Washington State, Oregon or Quebec rules of allowing public liquor at festivals we would all be pleasantly surprised. We can be trusted, I promise. Shane, Sept. 30 Clubs If recommendations to change food- and liquor-primary licences are accepted, the current club licence category may be unnecessary, as most of their special privileges will also be available to other licence classes. I recommend consulting with these organizations about eliminating the club designation completely and ensuring the updated food- or liquor- primary licences will meet their needs. Reclassication from the club licence will allow those clubs who wish to expand their food service to cater o-site to apply for a caterers endorsement. As well, if a club wants to sub- contract their own internal food service, this would be possible under a liquor-primary licence. Currently, this privilege is not available to clubs. Clubs should be able to maintain the option of limiting access to members and guests. Recommendation: 54. Government should consult with clubs to determine if there is interest in repealing the club designation, and reclassify the licence as food-primary or liquor-primary. I am a senior and a member of Legion Branch #57 here in Mission. We have an excellent fiendly, peaceful group here, and it is a pleasure to meet together with fiends over a meal or games activities. Tough I do not drink alcoholic beverages myself, I would like to see the day when I can take my family to a meal at our local Legion Hall. For example, we have an excellent meal time and meat draws, etc. each Friday evening. Last Friday, we were to have a chicken supper. My wife and I wanted to treat my daughter and her husband, and our 8-year old grandson, and introduce them to our fellowship and fiendsbut with the ruling against minors being served in the Legion facilities, we could not bring them. So I hope you will look at this issue favourably in the near future, so that we as a family can enjoy the fellowship and meals at our Legion branch! Allan, Oct. 1 British Columbia Ministry of Justice 36 Arenas, stadiums and event-driven facilities Arenas, stadiums and event-driven facilities typically provide liquor as an extra to their primary purpose, which is oering cultural and sporting activities for patrons. Minors are generally permitted in these facilities unless there are reasons to either prohibit them or not oer liquor while the minors are present. Licensing these facilities and events poses a low risk to the community. I recommend that the provincial government follow the lead of Alberta and establish a new licence class. This would allow for a more streamlined application process and permit minors to attend (usually without a time limit, as is being proposed for liquor-primary establishments). This would allow some venues, especially those in smaller communities, to oer entertainment events to the broader community. Currently, stadiums are permitted to serve beer and wine to those in the general seating area, and spirits to those in private boxes or premium seats. I recommend that stadiums be allowed to serve the same liquors as licensed venues; that this selection be available to all patrons, no matter where they are seated; and that patrons be able to buy alcohol in all public parts of the stadium, including the concourse (the open space the public passes through en route to washrooms, exits, etc.) and public seating areas. Recommendations: 55. The provincial government should introduce a new licence class and streamlined application process for facilities (e.g., stadiums, arenas and theatres) that charge a fee for an event (e.g., a sporting event or play). Minors should be permitted to stay until the event ends. 56. There should be more drink choices (e.g., mixed spirits) for consumers, as in all other types of licensed establishments. 57. Liquor sales in arenas and stadiums should be permitted in all public areas. As part of this, stadiums should have increased exibility to provide hawking services to patrons in both the seated and concourse areas, and throughout the scheduled event. B.C. Liquor Policy Review Final Report 37 Liquor Distribution Branch operations The warehousing and movement of liquor in B.C. is complex. Some products are delivered to licensees and liquor stores by the manufacturers themselves, while other products are more directly controlled by the LDB. In addition to LDBs own warehouses, there are privately owned warehouses that hold liquor inventories until they are ordered by licensees or the LDB. I believe there are eciencies to be found in the system. The proposed development of a new LDB warehouse in Vancouver may also help streamline the process. Recommendation: 58. LDB warehousing and distribution systems should be modernized and streamlined. The wholesale ordering processes should be improved with the goal of better and more ecient service to clients. Flexibility and red tape reduction As the industry grows and public expectations change, rules and regulations become an impediment to improving service. The Liquor Policy Review is an opportunity to clean up regulations that are onerous and irritating, and that interfere with a businesss ability to serve the public. The following changes are designed to increase exibility with licences. Recommendations: Liquor samples 59. Any establishment that sells liquor should be able to provide samples in a socially responsible manner. Liquor storage 60. Permit licensees to store liquor in secure, o-site locations, subject to notifying LCLB. 61. Individual establishments that are part of a larger company (e.g., chain outlets) should be able to transfer small amounts of liquor between locations. September 26, 2013 meeting with the British Columbia Government and Service Employees Union (BCGEU) V i g n e t t e : British Columbia Ministry of Justice 38 The Heid Out Brewhouse and Restaurant, and Fisher Peak Brewing Company le|J| kom|ch |s o looe-ttott|n looJ-lovet w|th Jee toots |n the lootenoys. 8otn onJ to|seJ |n Ctonotool, she stuJ|eJ lntetnot|onol 7out|sm Vonoement |n Austt|o onJ wotleJ |n the 8ohomos, Voloys|o onJ Atent|no. No one shoulJ hove oeen sutt|seJ when, oocl |n Ctonotool, she oeneJ het own testoutont leotut|n on Austt|on/Cetmon/ Atent|neon/5outheost As|on/ lootenoy menu. le|J|s kestoutont wos o lom|ly oo|t, onJ kom|chs Jouhtet, Votl|es, wotleJ het woy thtouh the lom|ly ous|ness, stott|n w|th ous|n tooles. Altet :, yeots |n the ous|ness, kom|ch onJ het Jouhtet Jec|JeJ to tole o leo ol lo|th onJ oen 7he le|J Out, o otewuo, testoutont onJ otewety lot outs|Je soles. An exet|enceJ ous|nesswomon, kom|ch hos o| Jteoms lot het new oetot|on. Vy Jteom ot lutute v|s|on |s to cteote on env|tonment whete oll enetot|ons con soc|ol|ze onJ leel comlottoole, whete ltesh, cteot|ve, locol looJ |s setveJ, outstonJ|n oeets ote oteweJ onJ setveJ, onJ the setv|ce exceeJs uests exectot|ons. we hove qu|te o joutney to teol|ze th|s v|s|on out Votl|es onJ l ote exc|teJ onJ ot|m|st|c lot the lututel l om olso ot|m|st|c onJ l oel|eve thot tecommenJot|ons |n the kev|ew w|ll mole |t eos|et lot these ous|nesswomen onJ othets l|le them to lull|ll the|t Jteom. 7h|s hos oeen o testoutont lot o lon t|me, onJ mol|n the l|quot l|cences mote ex|ole w|ll hel le|J|s ous|ness to tow. As they wete Jevelo|n the|t ous|ness lon, they ton |nto some o| chollenes otounJ l|cens|n. 7he oetot|on |s on two levels ot stteet level, onJ o oosement level w|th soce lot uol|c events. ll they wonteJ to hove o lom|ly-lt|enJly, uol|c event thot wos oen lot m|nots, the youn eole woulJ not oe olloweJ to entet thtouh the ltont Joot, woll :o leet thtouh the uo, onJ o |nto the lowet level. 7hey woulJ hove hoJ to woll Jown the oocl olley, |n the oocl Joot onJ thtouh the l|tchen oll so they coulJ ovo|J oe|n |n the l|quot-t|moty tem|ses lot o lew seconJs. 7hot |s cleotly o toolem. 7he new teulot|ons otounJ ollow|n m|nots |n l|censeJ oteos when |ts otot|ote meon le|J| kom|ch onJ het Jouhtet con tow onJ exonJ th|s ous|ness |n o woy thot moles sense os o ous|ness lon onJ os on otttoct|on |n Jowntown Ctonotool. B.C. Liquor Policy Review Final Report 39 Temporary licence extensions 62. Provide a more streamlined and time-sensitive application process to allow facilities such as ski hills and golf courses to temporarily extend their licensed area to another part of the property (e.g., a patio near a ski-hill gondola lift or a temporary patio near a golf clubhouse). Movement within establishments 63. Permit patrons to carry liquor between adjoining licensed establishments (e.g., from the pub to the adjoining restaurant). 64. Allow hotel and resort patrons to carry liquor throughout designated areas of the hotel (e.g., carrying a glass of wine presented at check-in to the hotel room). 65. Extend the hours that patrons can receive liquor through room service. Better use of space 66. Allow liquor-primary establishments to oer more liquor-free events for all-ages (e.g., music concerts). 67. Allow multi-use buildings (e.g., community centres) to use licensed space for non-alcohol related purposes. UBrews, UVins and growlers 68. Allow private and public retail liquor stores to sell growlers (rellable bottles) and operate refilling stations. 69. Change the regulations allowing UBrew/UVin members to change their name to Ferment-On-Premise (FOP) to be consistent with federal legislation. Establishments can continue to call themselves UBrews/UVins if they choose. Business ownership 70. Permit the owners and family members of UBrews and UVins to own other liquor-related establishments. 71. Remove or streamline the requirement that changes in corporate share ownership must be reported to LCLB, provided no new shareholders are added. British Columbia Ministry of Justice 40 Change Management These recommendations, when taken in total, represent signicant changes to both the regulatory and policy framework and to business practices in the liquor industry generally. Recommendations: 72. To make the required adjustment, the Ministry of Justice should develop an eective change management plan, which should include training and professional development for sta and consideration of appropriate LCLB resources. 73. Ensure that these recommendations, when taken in total, represent a signicant reduction in red tape for businesses in the liquor industry in B.C., to support economic development. B.C. Liquor Policy Review Final Report 41 The Last Word You may have heard me say in media interviews that everyone has an opinion on liquor. To take that one step further, I can say with absolute certainty that nding any majority with the same opinion on any one issue related to liquor is almost impossible. My job over the last three months was to listen. Listen to what British Columbians were saying on the website about needing more convenience, to what the health and safety advocates were telling me in our meetings about how critical it is to nd a balance and to what changes the industry needs to continue growing and thriving, bringing good jobs to our province. @SandraOldfield: Final wish list @John_Yap #BCLiquor #charityauction #promotelocal #farmersmarket #secondtastingroomlicense #lessredtape #pleaseandthankyou Not only did I listen, but I can assure you I heard every one of these points the majority of which are valid arguments and all of which were delivered with a passion that can only be achieved when people care about the outcome. I have worked hard to put together a suite of recommendations that strike the balance between increasing convenience of liquor products and improving health and safety, all while protecting government revenue and a critical, burgeoning industry in our province. This meant recommending happy hours but balancing that with a minimum drink price. It meant recommending a grocery model of liquor retail while maintaining the moratorium on liquor licensees. It meant updating and expanding the Serving it Right program while making recommendations to streamline licence approvals for restaurants, pubs, bars and special occasions. @stevethelocal: Thanks. Interesting mash up of ideas. Would not want to have to please all the people all the time. #bcliquor It has been over two decades since a review of B.C.s liquor policies asked you what you thought, what you wanted. Our society has come a long way from even Expo 86 the year imported beers were rst introduced in British Columbia and our licensed establishments were rst able to open on Sundays. I believe that together, these 73 recommendations will match B.C.s liquor regime with the expectations that stakeholders, industry and the public have for a 21 st century society. Should Cabinet decide to accept these changes, I would hope that, to the greatest extent possible, they are implemented with as seamless a transition as possible for consumers and businesses; ideally, this will be done without businesses needing to apply to take advantage of these changes. British Columbia Ministry of Justice 42 To those of you who participated in the Review, thank you this could not have been achieved without your thoughtful ideas, your concrete advice and your willingness for constructive debate. John Yap Parliamentary Secretary to the Attorney General and Minister of Justice for Liquor Policy Reform B.C. Liquor Policy Review Final Report 43 Recommendation Summary Health, safety and social responsibility 1. Government should expand public education about health and safety risks related to alcohol use, with particular emphasis on the harmful eects of binge drinking by youth and post-secondary students. 2. Government should identify all of its alcohol-related education initiatives to ensure they are focused and are as eective as possible. 3. Easily understood information about Canadas Low Risk Drinking Guidelines should be made available to consumers in licensed establishments. 4. The Liquor Control and Licensing Branch (LCLB) should have the regulatory authority to require social responsibility public education material to be posted in all licensed establishments and liquor stores. These materials should be developed in consultation with industry. 5. Government, public health ocials and industry should collaborate to develop eective and meaningful social responsibility educational campaigns for display in licensed establishments, liquor stores and advertising and public service campaigns. 6. While labelling liquor bottles and packages is the responsibility of the federal government, B.C. should work with the other provinces and territories to encourage warning labels on liquor products. 7. Serving it Right (SIR), the provincial governments responsible beverage service program, should be expanded and enhanced: o. 5oles onJ setv|ce sto |n testoutonts, w|ne stotes, tutol oency stotes onJ 8C l|quot 5totes who ote not olteoJy tequ|teJ to hove 5lk cett|cot|on shoulJ now oe tequ|teJ to ooto|n |t. l|censees, monoets, onJ soles onJ setv|n sto shoulJ olso oe tequ|teJ to tecett|ly. o. A locuseJ, oot|JeJ onJ less exens|ve vets|on ol 5lk shoulJ oe JeveloeJ lot eole who tece|ve 5ec|ol Occos|on l|cences (5Ols} ot who setve ot these events. 7h|s w|ll hel ensute they unJetstonJ the|t tesons|o|l|t|es otounJ tesons|ole honJl|n ol l|quot. c. 5lk content shoulJ oe uJoteJ to |ncluJe |nlotmot|on ooout: |. ConoJos low-t|sl Jt|nl|n u|Jel|nes. ||. the soc|ol onJ heolth costs ol olcohol. |||. why olcohol |s teuloteJ. J. 5lk shoulJ cont|nue to osl tecent toJuotes to evoluote the totom, w|th the o|m ol Jevelo|n onJ |nttoJuc|n |mtovements. British Columbia Ministry of Justice 44 8. The fee structure of SIR should be reviewed by the provider and government to ensure the cost to retailers and establishments is not onerous. Additionally, consideration should be given to the application of fee revenue to SIR program enhancements. 9. LCLB should develop an in-person educational program for licensees, like that in Ontario, to educate licensees and their sta about the Provinces liquor laws and how to operate their establishments in a responsible manner. The goal would be to increase licensee compliance and develop an increasing awareness of the health and safety harms from alcohol abuse. Government should consider using monetary penalties imposed on licensees to fund this initiative. 10. Government should encourage police to use the enforcement tools of ticketing and nes more frequently for those people under 19 years of age who are caught possessing liquor, using false identication or being in restricted premises selling liquor. Liquor retailers and the public should also be made more aware of the severity of these penalties. 11. Government should review enforcement penalties of LCLB and other jurisdictions to ensure that B.C.s penalty levels are appropriate. 12. Due to the varying size and focus of licensed establishments, consideration should be given to how dierent types of penalties (e.g., a suspension versus a monetary penalty) may impact a licensee and staff. 13. LCLB should work with police agencies to explore implementing last drink programs across B.C. on a more concerted basis. If an impaired persons last drink was in a licensed establishment, LCLB can investigate and possibly levy penalties for overserving clients. 14. LCLB should have the authority to regulate the home delivery of alcohol and should consider that home delivery service providers require SIR certification. 15. Applicants and licensees seeking a review of LCLB decisions should have access to a new and separate decision-making body outside the licensing branch. The Ministry of Justice should review current processes and determine how best to provide independent decision-making for those seeking appeal. 16. Permit licensees to oer time-limited drink specials (e.g., happy hours), provided the price is not below a prescribed minimum consistent with those advocated by health advocates. 17. LDB should review its minimum pricing policy as it applies to all categories of liquor so that minimum prices are set at an appropriate level. B.C. Liquor Policy Review Final Report 45 18. LDB should consider tying minimum prices to the amount of alcohol (e.g., a beer with seven per cent alcohol would have a higher minimum price than a beer with four per cent alcohol). Retail and convenience 19. The Province should develop and implement a retail model that meets consumer demands for more convenience by permitting the sale of liquor in grocery stores. Government should continue to restrict the total number of retail outlets and require separation of grocery products and liquor. This reects the views of health and safety advocates and the acknowledged safety benets of restricting minors access to liquor. 20. Introducing liquor in grocery stores should be phased in, giving public and private liquor stores time to adjust to the new retail model. 21. In consultation with industry, government should develop a policy that standardizes the types of non-liquor products that can be sold in liquor retail outlets. 22. As a grocery model is developed, government should look at consistency in operating hours for licensed, rural agency and manufacturer retail stores. 23. LDB should improve its marketing of B.C. liquor products in stores, developing new opportunities for product placement and innovative promotional and educational materials. 24. Government should work with industry and tourism associations to develop promotional materials such as maps, apps and brochures on B.C. wineries, breweries and distilleries. 25. Government should work with other Canadian wine-producing jurisdictions to jointly develop thematic wine promotions in each jurisdictions liquor stores to promote Canadian wine. 26. Government should discuss establishing a quality assurance program for B.C. craft beer and artisan-distilled spirits (similar to the VQA wine program). 27. Manufacturers should be able to establish low-risk tasting venues such as a picnic area as part of their existing licence without the need to apply for a specific endorsement. Government should work with industry, local government and First Nations to increase exibility for tasting options for manufacturers while being sensitive to potential negative impacts, such as noise, on the community. British Columbia Ministry of Justice 46 28. Allow manufacturers to oer patrons liquor that was not produced on site (e.g., a winery could sell a beer to a visitor). 29. Government should consult with the Agricultural Land Commission about amending the Agricultural Land Commission Act regulations to allow manufacturers operating within the Agricultural Land Reserve to allow more people in consumption areas (e.g. lounges) and to sell liquor that was not produced on site. 30. Government should consult with industry and review the minimum requirements to obtain a brewery, winery or distillery licence. Government should also consider how these requirements are regulated by LCLB and LDB to ensure transparency and an eective regulatory system. 31. Government should permit B.C. liquor manufacturers to oer products for sample and sale at temporary o-site retail locations (e.g., farmers markets), with appropriate conditions. The decision about whether to allow vintners, brewers and distillers to showcase their products at a particular location will be left to the location management (e.g., farmers market association). 32. Allow patrons to buy bottles of liquor to take home that are showcased at festivals or competitions. Consider amending SOLs issued to festivals and competitions, or allow BC Liquor or private retail stores to operate a temporary store on site as the means to provide for these sales. 33. Allow manufacturers to have o-site locations where they can sample and sell their products to the public (e.g., permanent tasting rooms in a downtown store). Licensing and cutting red tape 34. Minors, if accompanied by a parent or guardian, should be permitted in certain liquor-primary establishments. o. Covetnment shoulJ estool|sh o teosonoole t|me (e.., unt|l 9 .m.} thot tesects ooth the lom|lys cho|ce to |ncluJe m|nots |n some events onJ the estool|shments tesons|o|l|ty to ensute on otot|ote env|tonment lot oll. o. l|censees shoulJ cont|nue to hove the ot|on ol on oJult-only estool|shment. c. lot those estool|shments thot cuttently oet om|n ot|ons, lCl8 shoulJ hove the outhot|ty to otove ot Jeny whethet m|nots ote to oe olloweJ ooseJ on o m|nots otent|ol occess to om|n. V|nots shoulJ not oe etm|tteJ |n cos|nos ot commun|ty om|n centtes. As well, m|nots shoulJ not oe olloweJ |nto estool|shments thot oet oJult entetto|nment. B.C. Liquor Policy Review Final Report 47 35. The LCLB should clarify and modernize regulations with respect to food-primary operations, including lounge and kitchen requirements. 36. Food-primary licensees should continue to focus on food service, with a full menu available whenever liquor service is available. However, patrons should not be obligated to or made to feel like they must order food if they do not wish to eat. 37. Food-primary enterprises that wish to fully transition away from food service after a certain hour (e.g., 9 p.m.) if, for example, they wanted to operate as a nightclub will be able to apply for a licence endorsement, allowing them to operate like a liquor-primary licence during those hours only. o. V|nots woulJ not oe olloweJ |n the estool|shment oltet thot t|me. o. 7o teect the otooch tolen on l|quot-t|moty l|cences, locol ovetnment onJ tes|Jents shoulJ oe consulteJ os ott ol the otovol tocess. 38. Food- or liquor-primary licences should be available to other types of businesses, allowing a range of new establishments (e.g., spas, cooking schools, and galleries) to oer liquor to their clientele as an additional service. 39. Government should consult with UBCM, local governments and First Nations about streamlining the liquor application process. An applicant for a liquor- primary licence should be able to seek input from the local government or First Nation before or at the same time it applies to LCLB. 40. The criteria used by local governments and First Nations to evaluate an application from their community and then make a recommendation to LCLB should be determined by the local government or First Nation. This respects the role of local governments and First Nations in setting standards for assessing liquor-licence applications in their communities. 41. The provincial government should amend legislation so local government councils could, if they wish, give sta the authority to provide recommendations on licence applications (e.g., licence amendments involving a change in hours or capacity) directly to LCLB. This means local government recommendations would not have to be endorsed by a council resolution. 42. In the interest of customer service, First Nations, local and provincial governments should identify target timelines to resolve all applications related to liquor licensing. 43. Introduce online applications to simplify the process. British Columbia Ministry of Justice 48 44. Government should create an annual SOL for organizations that hold occasional meetings or activities throughout the year. Licence holders could store unconsumed liquor for future events. The licence holder would be required to ensure the safe transport and storage of unconsumed liquor product. 45. Event organizers should be able to apply for a single SOL that covers multiple events held over several days at several locations. 46. Consult with police and local governments and First Nations to nd ways to streamline their role in approving small-capacity, time-limited events (e.g., family wedding) that have little or no public safety risks for their communities. 47. Police should continue to be informed of all upcoming SOL events in their communities. 48. Remove the regulation that requires non-prot organizations to apply for an SOL for concerts and events. This will allow promoters who actually manage the event, to be responsible to meet all requirements of the liquor licence. 49. Permit businesses to obtain SOLs to raise funds for charity. 50. Permit hobby brewers and vintners to apply for an SOL to host competition events, allowing homemade beers and wines to be sampled by both judges and the public. 51. Except where it is not suitable from a public safety perspective, permit whole- site licensing for public events, eliminating beer gardens. 52. Allow the sale of mixed-spirit drinks at public SOL events. 53. Allow hosts to serve UBrew/UVin or homemade beer or wine at SOL events (e.g., weddings, family reunions). 54. Government should consult with clubs to determine if there is interest in repealing the club designation, and reclassify the licence as food-primary or liquor-primary. 55. The provincial government should introduce a new licence class and streamlined application process for facilities (e.g., stadiums, arenas and theatres) that charge a fee for an event (e.g., a sporting event or play). Minors should be permitted to stay until the event ends. 56. There should be more drink choices (e.g., mixed spirits) for consumers, as in all other types of licensed establishments. B.C. Liquor Policy Review Final Report 49 57. Liquor sales in arenas and stadiums should be permitted in all public areas. As part of this, stadiums should have increased exibility to provide hawking services to patrons in both the seated and concourse areas, and throughout the scheduled event. 58. LDB warehousing and distribution systems should be modernized and streamlined. The wholesale ordering processes should be improved with the goal of better and more ecient service to clients. 59. Any establishment that sells liquor should be able to provide samples in a socially responsible manner. 60. Permit licensees to store liquor in secure, o-site locations, subject to notifying LCLB. 61. Individual establishments that are part of a larger company (e.g., chain outlets) should be able to transfer small amounts of liquor between locations. 62. Provide a more streamlined and time-sensitive application process to allow facilities such as ski hills and golf courses to temporarily extend their licensed area to another part of the property (e.g., a patio near a ski-hill gondola lift or a temporary patio near a golf clubhouse). 63. Permit patrons to carry liquor between adjoining licensed establishments (e.g., from the pub to the adjoining restaurant). 64. Allow hotel and resort patrons to carry liquor throughout designated areas of the hotel (e.g., carrying a glass of wine presented at check-in to the hotel room). 65. Extend the hours that patrons can receive liquor through room service. 66. Allow liquor-primary establishments to oer more liquor-free events for all-ages (e.g., music concerts). 67. Allow multi-use buildings (e.g., community centres) to use licensed space for non-alcohol related purposes. 68. Allow private and public retail liquor stores to sell growlers (rellable bottles) and operate refilling stations. 69. Change the regulations allowing UBrew/UVin members to change their name to Ferment-On-Premise (FOP) to be consistent with federal legislation. Establishments can continue to call themselves UBrews/UVins if they choose. 70. Permit the owners and family members of UBrews and UVins to own other liquor-related establishments. British Columbia Ministry of Justice 50 71. Remove or streamline the requirement that changes in corporate share ownership must be reported to LCLB, provided no new shareholders are added. Change management 72. To make the required adjustment, the Ministry of Justice should develop an eective change management plan, which should include training and professional development for sta and consideration of appropriate LCLB resources. 73. Ensure that these recommendations, when taken in total, represent a signicant reduction in red tape for businesses in the liquor industry in B.C., to support economic development. October 1, 2013 meeting with the BC Restaurant and Food Services Association October 23, 2013 meeting with the Thompson Okanagan Tourism Association B.C. Liquor Policy Review Final Report 51 Appendix A: List of stakeholder meetings Nov. 4: Tsow Tun Lelum Treatment Centre/ FN Health Authority Oct. 31: Donnelly Group Oct.31: 7-11 Convenience Stores Oct. 31: Container World Facility Tour Oct. 31: Loblaw Oct. 31: Costco Wholesale Oct. 30: The Heid Out, Kimberley and District Chamber of Commerce, City of Cranbrook, Great Canadian Liquor Warehouse, Kimberley Alpine Resort Oct. 30: Fernie Brewing, Columbia Valley Chamber of Commerce, BC Hotel Association, Radium Hot Springs, Boston Pizza Oct. 28: Naramata Bench Winery Association Oct. 28: BC Estate Winery Oct. 26: Courtenay Royal Canadian Legion, CV Monarch Lions Club and Evergreen Seniors Club Oct. 24: Victoria Spirits Oct. 24: Longtable Distillery Oct. 24: Atomique Events Oct. 23: Artisan Distillers Guild Oct. 23: Thompson Okanagan Tourism Association Oct. 23: Canada West Ski Areas Association Oct. 22: Everything Wine Oct. 21: Families for Justice Oct. 21: Canadas National Brewers Oct. 21: Joey Restaurant Group Oct. 19: Vancouver Police Department Oct. 17: Container World Forwarding Services Inc. Oct. 17: Mark Anthony Brands Oct. 17: Private Liquor Store Association Oct. 17: Provincial Health Ocer Oct. 16: RCMP, Prince George Detachment Oct. 16: Northern Health Oct. 16: Fermenters Guild of BC Oct. 16: Prince George Mayor and Regional District of Fraser-Fort George Oct. 11: Centre for Addiction and Mental Health Oct. 11: Molson Coors Oct. 11: Canadian Centre on Substance Abuse Oct. 10: Sleeman Breweries Ltd. Oct. 10: Pacic Western Brewing Company Oct. 2: BC Hotel Association Oct. 2: Alliance of Beverage Licensees Oct. 2: Herb LeRoy - Honorary BC Wine Envoy Oct. 2: Rogers Arena/Vancouver Canucks Oct. 2: Import Vintners and Spirits Association Oct. 1: Vancouver Coastal Health Authority Oct. 1: BC Restaurant and Foodservices Association Oct. 1: BC Chamber of Commerce Oct. 1: Constellation Brands Sept. 30: Association of Canadian Distillers Sept. 30: BC Craft Brewers Guild Sept. 30: Modernize Wine Association of BC Sept. 26: Liquor Consultants Sept. 26: B.C. Government and Service Employees Union Sept. 25: Rural Agency Store Advisory Agency British Columbia Ministry of Justice Sept. 25: BC Healthy Living Alliance Sept. 25: Union of BC Municipalities Sept. 24: Campaign for Real Ale (CAMRA) Sept. 24: Cactus Club Restaurants Sept. 24: Earls Restaurants Sept. 23: Canadian Restaurant and Foodservices Association Sept. 19: BC Association of Chiefs of Police Sept. 19: Campaign for Culture Sept. 17: MADD Canada Sept. 16: Health Ocers Council of BC Sept. 11: Centre for Addictions Research of BC Sept. 11: Royal Canadian Legion Sept. 11: Victoria Police Department Sept. 11: B.C. Wine Institute Sept. 10: Wine Islands Vintners Association Sept. 9: Island Health B.C. Liquor Policy Review Final Report 53 Appendix B: Terms of Reference Terms of Reference for the Parliamentary Secretary for Liquor Policy Review Background Government regulates liquor in order to balance economic and social interests with the need to ensure public safety and the public interest. From time to time, government reviews liquor policy to ensure that liquor policies reect societal values and business needs as they change over time. Many liquor industry associations, local governments, citizens and interest groups have expressed interest in a liquor review and in modernizing B.C.s liquor laws. There has not been a comprehensive policy review of liquor since 1999. Purpose On June 7, 2013, government announced that the Parliamentary Secretary to the Attorney General and Minister of Justice for Liquor Policy Reform would lead the stakeholder consultations on modernizing B.C.s antiquated liquor laws and recommend improvements to the minister to take to Cabinet. This comprehensive review should consider all aspects of liquor policy including licensing, control, and LDB distribution, and must provide recommendations that: Create a licensing system that responds to emerging marketplace realities and reects current lifestyles and societal values. Provide exibility for businesses and remove operational barriers to help grow the economy, while protecting public safety. Recognize the importance of jobs and investment in the hospitality, tourism and agrifoods sectors, in support of the BC Jobs Plan. Ensure there is a sustainable liquor manufacturing sector. Provide for an ecient and eective liquor distribution system. Governance of the Liquor Distribution Branch is out of scope of the review. Guiding Principles Recommendations must: Ensure that government revenue is maintained or increased. Minimize health and social harms caused by liquor. Balance economic and social interests by ensuring public safety and the public interest of British Columbians and their communities is protected. British Columbia Ministry of Justice 54 Be evidence-based and transparent. Respect obligations under collective agreements and international and interprovincial trade agreements. Your goals and tasks include: 1. Developing a consultation model and approach that is able to meet the objectives above. The consultation approach must: Include opportunities for the public to provide input. Incorporate methods to build transparency into the process. 2. Leading consultations with a broad range of stakeholders, including representatives from industry, local government and First Nations organizations, police, health and social policy associations. Consultations should be completed by Oct. 31, 2013. 3. Producing a report by Nov. 25, 2013, for Attorney General and Minister of Justices consideration that she may take to Cabinet. The report must include the following: Results from the stakeholder consultation. Identication of potential opportunities and challenges. Recommendations for liquor reform. Reporting You will report to the Attorney General and Minister of Justice. Support The budget for the review will be provided by the Liquor Control and Licensing Branch. You will work through the deputy minister, Corporate Initiatives, and the assistant deputy ministers of the Liquor Control and Licensing Branch and the Liquor Distribution Branch, to ensure resource requirements consistent with the work plan are met. This may include obtaining policy support from Liquor Control and Licensing Branch and Liquor Distribution Branch policy divisions or other resources as needed. B.C. Liquor Policy Review Final Report